Ferguson reports first-half fiscal year sales growth
Ferguson’s parent company Wolseley plc recently released its financial results for the first half of the 2016 fiscal year. Ferguson reported overall growth of 6.5%, increasing its revenue 4.3% on a like-for-like basis, which measures growth of Ferguson’s existing stores or branches that have been open for at least one year.
Acquisitions contributed 2.1% of additional revenue growth. The company’s trading margin was 7.9%, consistent with 2015. Trading profit was 5.5% ahead of last year. “I’m pleased with our ability to outperform the market,” Ferguson CEO Frank Roach said. “Our associates are doing a great job working hard and growing sales while still remaining focused on customer service.”
Ferguson reported it gained market share in all its major businesses. Residential and commercial markets, both new construction and renovation, as well as maintenance and improvement, grew steadily in the first half, while blended branches (locations serving both residential and commercial customers) grew across all regions from a combination of market growth and good market-share gains, the company noted.
Ferguson said its B2C e-commerce business experienced strong growth, while fire and fabrication, and HVAC both generated good growth with waterworks growing more modestly against strong prior-year comparatives.
Ferguson made six acquisitions in the first half of fiscal 2016, including regional fire and fabrication businesses Central Pipe and Supply, Action Fire and Fab and Atlantic American. Ferguson also acquired online appliance business Living Direct, California appliance retailer Renwes and Chicago-based commercial MRO distributor PCS Industries.